Question

A sum of Rs. 8,000 is lent at 8% simple interest for 3 years. What is the total amount?

• A. Rs. 9,920
• B. Rs. 9,940
• C. Rs. 9,960
• D. Rs. 9,980

Hint:

For simple interest, calculate interest first, then add to principal for total amount.

Answer 1

The Correct Option is A

Step-by-step Solution

1. Write the simple interest formula.
   Simple Interest (SI) = (P × R × T) / 100
   where P = Principal, R = Rate (% per year), T = Time (years)
2. Substitute the values.
   P = 8000, R = 8, T = 3
   SI = (8000 × 8 × 3) / 100
3. Compute the interest.
   8000 × 8 = 64,000;  64,000 × 3 = 192,000;
   192,000 ÷ 100 = Rs. 1,920
4. Add interest to principal to get total amount.
   Amount A = P + SI = 8000 + 1920 = Rs. 9,920
5. Quick check (per-year method).
   8% of 8000 = 640 (per year); for 3 years: 640 × 3 = 1920;
   8000 + 1920 = 9920 ✓

Final Answer

Rs. 9,920 — Correct option.